Bill Text: OR SB620 | 2011 | Regular Session | Introduced
Bill Title: Relating to tax credits for biomass.
Spectrum: Partisan Bill (Independent 1-0)
Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB620 Detail]
Download: Oregon-2011-SB620-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3690
Senate Bill 620
Sponsored by Senator BOQUIST (at the request of Tomas Endicott)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Extends applicability of tax credits available for activities
related to biomass. Defines 'oilseed processor' for purpose of
tax credit provisions.
A BILL FOR AN ACT
Relating to tax credits for biomass; amending ORS 315.141 and
sections 6 and 29, chapter 739, Oregon Laws 2007.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 315.141 is amended to read:
315.141. (1) As used in this section:
(a) 'Agricultural producer' means a person that produces
biomass in Oregon that is used, in Oregon, as biofuel or to
produce biofuel.
(b) 'Biofuel' means liquid, gaseous or solid fuels, derived
from biomass, that have been converted into a processed fuel
ready for use as energy by a biofuel producer's customers or for
direct biomass energy use at the biofuel producer's site.
(c) 'Biofuel producer' means a person that through activities
in Oregon:
(A) Alters the physical makeup of biomass to convert it into
biofuel;
(B) Changes one biofuel into another type of biofuel; or
(C) Uses biomass in Oregon to produce energy.
(d) 'Biomass' means organic matter that is available on a
renewable or recurring basis and that is derived from:
(A) Forest or rangeland woody debris from harvesting or
thinning conducted to improve forest or rangeland ecological
health and reduce uncharacteristic stand replacing wildfire risk;
(B) Wood material from hardwood timber described in ORS 321.267
(3);
(C) Agricultural residues;
(D) Offal and tallow from animal rendering;
(E) Food wastes collected as provided under ORS chapter 459 or
459A;
(F) Yard or wood debris collected as provided under ORS chapter
459 or 459A;
(G) Wastewater solids; or
(H) Crops grown solely to be used for energy.
(e) 'Biomass' does not mean wood that has been treated with
creosote, pentachlorophenol, inorganic arsenic or other inorganic
chemical compounds or waste, other than matter described in
paragraph (d) of this subsection.
(f) 'Biomass collector' means a person that collects biomass in
Oregon to be used, in Oregon, as biofuel or to produce biofuel.
{ + (g) 'Oilseed processor' means a person that receives
agricultural oilseeds and separates them into meal and oil by
mechanical or chemical means. + }
(2) The Director of the State Department of Energy may adopt
rules to define criteria, only as the criteria apply to organic
biomass, to determine additional characteristics of biomass for
purposes of this section.
(3)(a) An agricultural producer or biomass collector shall be
allowed a credit against the taxes that would otherwise be due
under ORS chapter 316 or, if the taxpayer is a corporation, under
ORS chapter 317 or 318 for:
(A) The production of biomass in Oregon that is used, in
Oregon, as biofuel or to produce biofuel; or
(B) The collection of biomass in Oregon that is used, in
Oregon, as biofuel or to produce biofuel.
(b) A credit under this section may be claimed in the tax year
in which the { - credit is certified under subsection (5) of
this section - } { + agricultural producer or biomass collector
transfers biomass to a biofuel producer or oilseed processor + }.
(c) A taxpayer may be allowed a credit under this section for
more than one of the roles defined in subsection (1) of this
section, but a biofuel producer that is not also an agricultural
producer or a biomass collector may not claim a credit under this
section.
(d) Notwithstanding paragraph (a) of this subsection, a tax
credit is not allowed for grain corn, but a tax credit shall be
allowed for other corn material.
(4) The amount of the credit shall equal the amount certified
under subsection (5) of this section.
(5)(a) The State Department of Energy may establish by rule
procedures and criteria for determining the amount of the tax
credit to be certified under this section, consistent with ORS
469.790. The department shall provide written certification to
taxpayers that are eligible to claim the credit under this
section.
(b) The State Department of Energy may charge and collect a fee
from taxpayers for certification of credits under this section.
The fee may not exceed the cost to the department of determining
the amount of certified cost.
(c) The State Department of Energy shall provide to the
Department of Revenue a list, by tax year, of taxpayers for which
a credit is certified under this section, upon request of the
Department of Revenue.
(6) The amount of the credit claimed under this section for any
tax year may not exceed the tax liability of the taxpayer.
(7) Each agricultural producer or biomass collector shall
maintain the written documentation of the amount certified for
tax credit under this section in its records for a period of at
least five years after the tax year in which the credit is
claimed and provide the written documentation to the Department
of Revenue upon request.
(8) The credit shall be claimed on a form prescribed by the
Department of Revenue that contains the information required by
the department.
(9) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular tax year may be
carried forward and offset against the taxpayer's tax liability
for the next succeeding tax year. Any credit remaining unused in
the next succeeding tax year may be carried forward and used in
the second succeeding tax year, and likewise any credit not used
in that second succeeding tax year may be carried forward and
used in the third succeeding tax year, and any credit not used in
that third succeeding tax year may be carried forward and used in
the fourth succeeding tax year, but may not be carried forward
for any tax year thereafter.
(10) In the case of a credit allowed under this section:
(a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
(b) If a change in the status of the taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
(c) If a change in the taxable year of the taxpayer occurs as
described in ORS 314.085, or if the department terminates the
taxpayer's taxable year under ORS 314.440, the credit allowed
under this section shall be prorated or computed in a manner
consistent with ORS 314.085.
SECTION 2. Section 6, chapter 739, Oregon Laws 2007, as amended
by section 5, chapter 590, Oregon Laws 2007, and section 18,
chapter 913, Oregon Laws 2009, is amended to read:
{ + Sec. 6. + } (1) ORS 315.141, 315.144 and 469.790 apply to
tax credits for tax years beginning on or after January 1, 2007,
and before January 1, { - 2012 - } { + 2019 + }.
(2) Notwithstanding subsection (1) of this section, a tax
credit is not allowed for wheat grain (other than nongrain wheat
material) { - before - } { + for + } tax years beginning
{ - on or after - } { + before + } January 1, 2009, or on or
after January 1, { - 2012 - } { + 2019 + }.
SECTION 3. Section 29, chapter 739, Oregon Laws 2007, as
amended by section 17, chapter 913, Oregon Laws 2009, is amended
to read:
{ + Sec. 29. + } ORS 315.465 and 315.469 apply to tax years
beginning on or after January 1, 2007, and before January 1,
{ - 2012 - } { + 2019 + }.
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